ARV Calculator - After Repair Value for Fix-and-Flip Properties - Flip Deal Analysis

An ARV calculator estimates what a property may be worth after planned repairs and combines that value with the costs of buying, renovating, holding, and selling it. It is useful before making an offer on a distressed home, when pricing a scope of work, when comparing several flip candidates, and when setting a conservative exit value. Use the result as an underwriting screen, then confirm the assumptions with local sales data, contractor bids, and financing terms.

• • Screen a fixer-upper: Compare a proposed purchase price and rehab budget with a realistic post-renovation value before spending time on a full bid.
• • Set an offer ceiling: Use the 70% benchmark as a quick starting point, then adjust for local transaction costs, project risk, and the return you require.
• • Build a flip budget: Bring monthly carrying costs and the expected time to sale into the same view as purchase and repair spending.
• • Compare exit plans: Test a lower ARV, a longer hold, or a higher sale-cost rate to see whether the proposed deal still supports its return target.

After-repair value is not the current condition value. It is a forward-looking estimate of the price a renovated property could command in its local market. The quality of the estimate depends on the renovation scope matching the homes used as comparables. A dated three-bedroom house should not be compared with a luxury remodel simply because both are nearby.

For a broader view of property cash flow and appreciation assumptions, the real estate calculator can complement this flip screen.

The model treats ARV as the projected sale value and subtracts every cost entered for the project. Selling costs are applied to ARV, while holding costs are applied to the number of months you expect to own the property.

• ARV: The completed value supported by recent, similar sales after reasonable condition and feature adjustments.
• Total investment: Purchase price plus repairs, modeled sale costs, and the carrying cost for the expected hold.
• ROI: Projected profit divided by total investment. It is a project ratio, not an annualized return.
• 70% maximum offer: A quick investor heuristic that reserves 30% of ARV for repairs, costs, and margin; it is not a universal rule.

The 70% figure is best treated as a screening shortcut. It does not automatically include every cost in this page’s detailed profit model, and it can be too conservative or too aggressive depending on the market, financing, taxes, insurance, and resale timeline. A negative maximum offer means the repairs alone exceed the heuristic’s available allocation.

For comparable selection, use homes that resemble the finished project in location, size, room count, style, and condition. According to the Fannie Mae Selling Guide, comparable sales should have similar physical and legal characteristics, including site, room count, finished area, and style.

According to Fannie Mae Selling Guide, comparable sales should have similar physical and legal characteristics, including site, room count, finished area, and style.

Use the ROI calculator when you want to compare this project return with a separate investment scenario.

Five inputs describe the project, but four ideas determine whether the result is useful: comparable sales, scope of work, carrying costs, and exit costs.

The value and cost sides must describe the same finished property. If the ARV assumes a permitted second bathroom but the repair budget omits plumbing, permits, and fixtures, the calculated return is overstated. Likewise, a square-foot comparison is only meaningful when the measured finished area and property type are comparable.

When reviewing comparable homes, the price per square foot calculator helps normalize sale prices by finished area before you choose an ARV.

Use this ARV calculator from evidence rather than the purchase price alone. Enter a conservative value and a repair scope that another person could review line by line.

1. 1 Enter the proposed purchase: Use the contract price, expected offer, or acquisition target. Test more than one price when negotiation is still open.
2. 2 Estimate the repairs: Use contractor bids or a room-by-room scope. Include permits, debris, design, and a contingency outside the repair line when those costs are not already included.
3. 3 Set the ARV: Choose a completed-property value from similar closed sales and adjust for location, size, layout, finish, and market timing.
4. 4 Add exit and hold assumptions: Enter a sale-cost percentage, monthly carrying cost, and realistic months from purchase to closing. Include financing interest in monthly holding costs when applicable.
5. 5 Review profit and ROI: Compare projected profit and ROI with your minimum target. Then lower ARV, raise repairs, and extend the hold to see how much margin remains.
6. 6 Compare the offer benchmark: Use the 70% maximum offer as a second screen, not as permission to ignore local evidence or a full underwriting model.

For the worked example, enter $100,000 purchase, $30,000 repairs, $200,000 ARV, 10% selling costs, $1,500 monthly holding costs, and six months. The calculator returns $41,000 projected profit, 25.79% ROI, and a $110,000 70% maximum offer. Test eight months next to see the cost of delay.

After setting a conservative value and budget, the what-to-offer-on-house calculator provides another way to frame the proposed purchase price.

A transparent estimate helps you decide which assumption needs better evidence and which projects should not move forward.

• • Offer discipline: A maximum offer benchmark gives negotiation a ceiling tied to the finished value and repair scope instead of emotion or list price.
• • Budget visibility: Combining purchase, rehab, sale, and monthly costs exposes expenses that disappear when a project is judged only by gross resale value.
• • Margin testing: Changing ARV, repairs, or months held shows whether profit depends on one optimistic input.
• • Project comparison: Using the same cost categories makes it easier to rank several properties by projected profit and ROI.
• • Delay awareness: A monthly holding-cost input converts schedule risk into dollars that can be discussed with contractors and lenders.
• • Exit planning: The result helps compare a resale plan with a possible rental or refinance analysis, while keeping the flip assumptions separate.

Profit is a residual: it can look large until every dollar needed to reach closing is included. A project with a higher ARV may still be weaker if it requires a longer construction schedule, larger financing balance, or expensive finish package. Keep an audit trail for each input so the model can be updated rather than rebuilt from memory.

If the exit plan changes to a rental hold, the cap rate calculator can help evaluate income value separately from this resale model.

The calculator is only as strong as the evidence behind its value, costs, and timeline assumptions. Review these variables before relying on the projected margin.

• • ARV is an estimate, not a certain sale price or an appraisal. A local appraiser or agent may apply adjustments that this simple model cannot represent.
• • The model does not calculate financing schedules, income taxes, annualized ROI, permitting time, or a detailed line-item rehab budget. Consult qualified professionals for those decisions.
• • Tax treatment depends on how the property is held and used. The calculator’s repair and holding categories are planning inputs, not tax classifications.

HUD FHA Connection describes a rehabilitation contingency reserve as funds set aside to cover unforeseen project costs. That principle matters even when your project is not using an FHA program: a thin reserve can turn a projected profit into a cash call. Separately, the IRS explains in Publication 527 that repairs and improvements to residential rental property are treated differently, so this estimate should not be used to determine tax deductions.

When selling costs are uncertain, run a low, base, and high case. For example, compare 8%, 10%, and 12% selling costs, or add two months to the hold. If the project only works in the base case, treat the offer as requiring more evidence rather than as a strong margin.

According to HUD FHA Connection, HUD FHA Connection describes a rehabilitation contingency reserve as funds set aside to cover unforeseen project costs.

According to Internal Revenue Service Publication 527, The Internal Revenue Service explains in Publication 527 that repairs and improvements to residential rental property are treated differently, so a flip budget should not be treated as tax advice.

For a closer estimate of the sale-side deduction, the real estate commission calculator can model broker compensation before you set the selling-cost percentage.